Tag Archives: «Hardship Discharge»

There are some cases where a person cannot obtain the disability discharge but may still be able to obtain an undue hardship discharge in bankruptcy. Kentucky Higher Education Student Loan Corporation “KHESLC” is not the Department of Education. However a loan may have originated at Kentucky Higher Education Student Loan Corporation and may have been purchased…

First, I am going to share with you the wrong way to pay for attorney fees in a Chapter 7 Bankruptcy. Paying attorney fees in a Chapter 7 bankruptcy after the case is filed is not allowed by the bankruptcy court. Here is a 56 minute February 2015 audio of a judge hauling both the attorney and clients…

In 2005, older adults owed $2.8 Billion in federal student debt. In 2013, this increased to over $18 Billion, according to the Government Accountability Office (GAO) in 706,000 households compared to 22 million households with the remaining student load debt. People over 65 left on social security default their student loan debt at a much higher rate. Although other debts like income taxes…

After October 2005 private student loans also required a showing of hardship to obtain a discharge in bankruptcy. But private student loans are subject to the statute of limitations and other collection laws. A Chapter 13 can run the clock until private student loans become noncollectable. To find out if your loan is a federally…

Both the IRS and Government guaranteed student loans can garnish your paycheck without going to court. But bankruptcy can stop the garnishment even if they are priority debts or even if they can’t be discharged. The IRS and Department of Education can issue garnishment orders even in states that dont allow garnishments. But a Chapter…

What is an undue hardship for a student loan. In order to hardship discharge a student loan, a debtor has to prove repayment would be an “undue hardship.” But hardship and what a judge thinks is an “undue hardship” will probably be two separate things. Kentucky and most state have the Bruner test but even…

Some Chapter 7 cases can discharge student loans but the state of the art solution has been a Chapter 13 for a situation where the individual owes less than 360,000 in student loan debt. And although a Chapter 7 or Chapter 13 Bankruptcy student loan discharge seems impossible filing can make the debt noncollectable. Your Bankruptcy…

Yes it is hard to bankrupt student loans. How hard is it? We think that some judges go beyond the standard. Federal bankruptcy courts grant bankruptcy student loan discharges based on section 523(a)(8)’s “undue hardship” standard. Some courts will allow attorneys and doctors to discharge a student loan while others will be harsh. In an Ohio case, the court found that a disabled blind…

Protections for student loans have increased since 1978. Originally all student loans were dischargeable until: an amendment in 1978 made student loans dischargeable in bankruptcy after 5 years of repayment in 1990 bankruptcy discharges for student loans went to 7 years; later it required the court to rule it was an undue hardship to repay…

Over and over again we here the same comment from our clients that attempt loan modification. “Everytime I speak with the mortgage company, I get a different person who tells me something different.” “I sent in my paperwork three times because they couldn’t find it.” ”I sent in my paperwork only to be told that…